Sunday, Jan 01, 2012
The Business Times  
 
2012 could be a quiet year for collective sales  
 
By Mindy Tan

Caution pervades discussions of collective sales come 2012, with analysts of the opinion that it could be a quiet year given recent developments.

Topmost on most people's minds include the recent round of cooling measures by the government, alongside the number of private homes made available under the Government Land Sales (GLS) programme.

'Together with the large supply of sites from the GLS programme and the cooling measures introduced by the government in 2011, collective sales are likely to continue the downward trend unless owners are willing to lower their expectations,' noted Denson Phua, head of investment sales at Dennis Wee Group (DWG).

From a macro perspective, economic uncertainties have also made developers more cautious, said Jones Lang LaSalle's head of research Chua Yang Liang.

'Given the global economic uncertainty stemming from the eurozone sovereign debt situation, investors are likely to remain cautious. Coupled with the recent stamp duty on buyers, we could see further tightening of demand for collective sales in 2012,' he said.

Credo's deputy managing director Tan Hong Boon expects collective sales next year to hit $2 billion, driven by small and medium-size deals, if owners' price expectations are realistic.'We expect a slight slowdown because of the new measures, but we still feel developers will continue to pick up sites because collective sales are still the main source of freehold sites,' he said.

To-date, 2011 has seen 49 collective sale deals, crossing the $3 billion mark, according to Credo's data.

Indeed, policies implemented to cool the property market are making themselves felt on 2012 collective sales projections.

The additional buyer's stamp duty (ABSD), for instance, which came into effect this month, affects developers on two fronts.

For one, developers must build and sell all units on residential sites within five years, or face a 10 per cent stamp duty.

Market watchers agree that this five-year limit will give developers more cause for pause, and make them weigh their land purchase decisions more carefully.

In addition, foreigners might be less willing to sell their homes, pointed out Petra Blazkova, CBRE's head of research for South-east Asia.

'Foreigners who own properties in potential collective sale sites will not give their consent to the sale because they will have to pay an additional 10 per cent stamp duty under the latest property measure if they have to buy a replacement property,' she said.

There is also the pipeline of GLS sites to contend with. New land released for the first half of 2012 will constitute about 14,100 private homes, of which around 7,000 will be rolled out through the confirmed list.

'This puts a dampener on developers' interest in collective sales, especially for the larger sites,' said Ms Blazkova. 'GLS sites are also more attractive because the acquisition process is straightforward and they are not subject to development charge.'

There is also the issue of bank financing, said Ku Swee Yong, chief executive of International Property Advisor. 'Banks prefer to lend to developers who bid for GLS rather than bidding for large en bloc sites (because) . . . the drawdown of the credit line by a developer could take two to three years, assuming the en bloc is successful,' he said.

That being said, Credo's Mr Tan pointed out that small developers priced out of the large GLS sites have become more active in the collective sales market this year.

This is one of the key reasons why most of the collective sale sites sold in 2010/11 have generally been below $100 million each - within the financial means of smaller developers.

Noted DWG's Mr Phua: 'Smaller collective sale sites of below $100 million will be well received if the sites are reasonably priced.'

He added: 'It would be better if these sites have obtained 100 per cent approval as the entire process will be expedited.'

In the course of this year, sites with hefty price tags - Pine Grove, Pearl Bank Apartments, Laguna Park, Hawaii Tower and Tulip Garden, which launched en bloc attempts priced at more than $500 million - have failed to find buyers, despite being relaunched at lower asking prices.

The largest collective sale, by value, to take place this year was a site at Henry Park, which was bought for $175.9 million by Kentish View, a subsidiary of Far East Organization, in December.

Owners of freehold condo Tulip Garden in District 10 relaunched a collective sale bid at $600 million in June, down from the $650 million price tag in January. Pearl Bank Apartments, near Chinatown, also lowered its asking price to $725 million in October, down from $750 million in March.

On the other hand, it was the smaller deals that went through more smoothly. Of 47 known deals concluded prior to Henry Park, the average was about $60 million, said Credo's Mr Tan.

Tuesday, Jan 03, 2012
AsiaOne  
  
Price increase for private homes, resale flats moderate in Q4 2011  
 
The rate of increase of prices for both private homes and HDB resale flats have seen a moderation from the third quarter, according to flash estimates released today by the Urban Redevelopment Authority (URA) and the Housing & Development Board (HDB).

HDB's flash estimate of the 4th Quarter 2011 Resale Price Index (RPI) is 190.4, an increase of 1.7 per cent over 3rd Quarter 2011. The increase is lower than the 3.8 per cent seen in the previous quarter.   The RPI provides information on the general price movements in the public residential market.

Meanwhile, URA's flash estimate of the private residential property index for 4th Quarter 2011 shows that the rate of increase in private residential property prices has continued to moderate for the 9th consecutive quarter since 4th Quarter 2009.

The private residential property index rose from 205.7 points in 3rd Quarter 2011 to 206.2 points in 4th Quarter 2011. This represents an increase of 0.2 per cent, compared to the 1.3 per cent increase in the previous quarter.

Prices of non-landed private residential properties increased by 0.5 per cent in Core Central Region and by 0.6 per cent in Outside Central Region in the quarter. There was no change in the prices in Rest of Central Region. In comparison, in 3rd Quarter 2011, prices of non-landed private residential properties increased by 0.7 per cent in Core Central Region, 1.2 per cent in Rest of Central Region and 2.1 per cent in Outside Central Region.

The flash estimates are compiled based on transaction prices given in caveats lodged during the first ten weeks of the quarter supplemented by information on the number of new units sold by developers. The statistics will be updated 4 weeks later when URA releases the full 4th Quarter 2011 real estate statistics, when more data on the caveats lodged and the take-up of new projects are captured.

The RPI for the full quarter and more detailed public housing data for 4th Quarter 2011 will be released on Jan 27.

Thursday, Jan 05, 2012
AsiaOne  
 
Hougang DBSS flats to go on sale tomorrow  
 
A new Design, Build & Sell Scheme (DBSS) project in Hougang will go on sale tomorrow.

The 680-unit Parkland Residences has three-, four- and five-room units, with prices ranging from $359,000 to $706,000.

It will have four 18-storey towers, and will be next to Punggol Park.

Three-room flats will range from $359,000 and $404,000. Four-room units will sell from $485,000 and $571,000.

Five-room flats will come in two types: standard and premium, which will have an additional bedroom. The standard one will cost from $606,000 while the premium version is available from $608,000 to $706,000.

Parkland Residences is located near the junction of Hougang Avenue 8 and Upper Serangoon Road, with facilities such as barbecue pits, a fitness corner, an eating house, and a minimart.

Monday, Jan 09, 2012
The Business Times  
 
Foreigner share of resale ECs spikes to 49%  
 
By Mindy Tan

SALES of completed executive condominiums (ECs) on the resale market saw a surge of interest from foreigners in the first 11 months of 2011. Sales of new units too locked in a record number of transactions from January to November last year.

Foreigners, including permanent residents (PRs), bought 383 resale ECs in the first 11 months of 2011, exceeding the 322 units which were purchased for the whole of 2010, said property market research firm R'ST Research.

This accounts for 49 per cent of the 775 resale ECs transacted in 2011, up from the 33 per cent recorded.

Looking specifically at foreigners who are non-PRs, 108 EC transactions were made, more than twice the 49 units bought in 2010. The bulk of these purchases were by Chinese nationals (70 transactions) and Indian nationals (19 transactions).

On the developer sales front, 2,058 EC units were transacted in the developer (new) sales market. This marked fresh records for both new sales, and total EC transactions. The latter saw a total of 2,833 EC units purchased within the 11 months, breaching the last peak of 1,876 units in 1998.

ECs - a hybrid between public and private homes - come with condo facilities, but cost less than a private condo. They have initial sale restrictions similar to those for public housing, such as a minimum occupation period of five years.

After five years, they can be sold to Singaporeans and PRs. They are fully converted to private housing after 10 years - it is then that they can be bought by foreigners who are not PRs.

Supply of ECs will be further ramped up this year, with the government ready to release sites for up to 5,000 EC units through the Government Land Sales (GLS) programme - sites for 3,000 units will be launched in the first half of 2012, under the Confirmed List, comparable to the 3,000 EC units from five sites sold for the whole of 2011.

According to Ong Kah Seng, director at R'ST Research, the buoyant sales activity can be attributed to the attractive pricing ECs offer.

'Various EC projects were launched from end 2010 and received good buying interest amid the economic slowdown,' he noted. 'In fact, due to a significant run up in private condominium prices translating to record selling prices, ECs became an attractive alternative.'

Joseph Tan, executive director, residential, CBRE, agreed, noting that ECs are always relatively more affordable, given that their average prices are some 20 per cent to 25 per cent below those of new 99-year-leasehold private condominiums in the same neighbourhood.

There is also the issue of supply, he pointed out.

Eight EC sites were sold via the GLS programme in 2010, after a hiatus of six years. Three new projects were launched in 2010, with the remaining five launched in 2011.

Alan Cheong, associate director of Savills research and consultancy, added: 'ECs were designed for family units. They have sizes between 900 to 1,300 sq ft. That makes it attractive for owner occupiers (with families).'

On the resale front, 775 resale EC units were transacted in the first 11 months of 2011, according to R'ST Research.

Of this, 383, or 49 per cent, were purchased by foreigners (including PRs). Mainland Chinese, Indian nationals and Malaysians accounted for the bulk of the purchases.

Sales data showed that for the eleven months, mainland Chinese bought 151 resale EC units, followed by Indian nationals with 118 resale units, and Malaysians at 62 resale units.

Foreigners (non-PRs) bought 108 EC units in the first 11 months.

One of the key reasons for the surge in foreign interest lies in ECs' attractive pricing, with resale units about 13 per cent below those of private resale homes in similar locations, said CBRE's Mr Tan.

The top-selling EC projects in 2011 included Prive (537 units), Blossom Residences (293 units) and Belysa (278 units).

On the resale front, the top-selling projects were Northoaks (81 units), Woodsvale (75 units) and The Floravale (62 units).

Looking ahead, R'ST Research's Mr Ong expects the strong buying interest to continue into 2012, in part supported by the recent raising of buyers' income ceiling from $10,000 to $12,000.

'However, there may be a handful of home seekers who are waiting for prices of private residential properties to fall in 2012 in view of the ample supply, challenging economic conditions, and private residential cooling measures,' he added.

'As such, buyers are unlikely to rush into purchasing an EC unless it fits into his property buying requirements. The overall buying interest for ECs is expected to be encouraging, but not excessively optimistic.'

Monday, Jan 09, 2012
The Business Times  
 
New stamp duty seen depressing bungalow sales  
 
By Kalpana Rashiwala

THE 10 per cent additional buyer's stamp duty on foreigners buying private homes in Singapore will lead to a fall in their bungalow purchases on Sentosa Cove in coming months.
 

As a result, prices of Sentosa Cove bungalows will moderate, which, in turn, will cause prices of Good Class Bungalows (GCBs) on mainland Singapore to ease, says CBRE.

But any price fall will be measured due to the limited supply of bungalows - in both GCB areas and Sentosa Cove - as well as the holding power of existing owners, says CBRE director of luxury homes Douglas Wong, who specialises in GCB deals.

He predicts that GCB prices may ease about 3-5 per cent this year. For Sentosa Cove bungalows, the price decline is expected to be closer to 5 per cent.

The number of GCB transactions is likely to slip by 20-30 per cent from 56 deals last year to 40-45 deals in 2012, with the value of transactions too set to ease from last year's $1.15 billion to $800-900 million in 2012, added Mr Wong.

RealStar Premier Group managing director William Wong said: 'I foresee a slight drop of about 5 per cent in GCB prices but a much bigger fall of about 20 per cent in GCB transactions for 2012.

'Buyers are expecting prices to decline but most GCB sellers have strong holding power and are not prepared to adjust their prices downwards. Hence, we're faced again with a buyer-seller stalemate, where buyers' offers - if any - are way below sellers' expectations.

'Transactions are likely to start picking up only from the second quarter of 2012 as it will take a few months for buyers and sellers to monitor the market to see what actions to take in view of the introduction of the additional buyer's stamp duty (ABSD) effective Dec 8.'

Singaporeans who are buying their third and subsequent residential properties pay a 3 per cent ABSD.

'This is a further dampener to an already soft GCB market. We expect that GCB buyers will be largely confined to end-users and long-term investors,' said CBRE's Mr Wong.

Giving his take on the GCB market this year, Newsman Realty managing director KH Tan said: 'Q1 will be quiet and prices may fall about 2 per cent. We should see more transactions in Q2 and Q3. There are a lot of potential buyers keen to make a purchase but they hope to get a good deal. We could end the year with prices up 2-5 per cent from last year.'

On Sentosa Cove, where foreigners are allowed to buy landed homes subject to government approval, Mr Tan reckons that the imposition of the 10 per cent ABSD on non-PR foreigners buying private homes from Dec 8 will lead to a slowdown in bungalow purchases in the upscale waterfront housing district for the first two quarters of 2012.

'Prices may drop a minimum 10 per cent in the first two quarters of 2012. But transactions may slowly come back in Q4 as people get used to the new rules and sellers adjust their prices. A lot of HNWIs want to come to Singapore, become PRs. By Q4 2012, prices may start to recover by 2-3 per cent, leading to an overall full-year price drop of about 10 per cent.'

CBRE's data shows that the average price achieved for GCB transactions last year was $1,272 per square foot (psf) on land area, up 17 per cent from the preceding year. The average price of bungalow deals on Sentosa Cove rose at a slower clip of 12.4 per cent, from $1,910 psf in 2010 to $2,146 psf in 2011.

However, on a longer timeframe, between 2006 and 2011, the average psf price for bungalow deals on Sentosa Cove has risen 161.9 per cent, ahead of a 153.9 per cent increase for GCB deals over the same period. Sentosa Cove bungalows posted stronger price growth than bungalows in GCB areas in 2007 and 2008, when there was much buzz in foreign buying of luxury homes, although there was just one bungalow deal in Sentosa Cove in 2008.

Foreign buying in Singapore's luxury housing market evaporated when Lehman Brothers collapsed in late 2008. This sent the average psf price for Sentosa Cove bungalow deals in 2009 down by 21.9 per cent. In the same year, the average psf transacted price for GCBs inched up 1.3 per cent. Post-global financial crisis, in 2010 and 2011, the annual psf price growth has been stronger for bungalows in GCB areas than on Sentosa Cove.

Sentosa Cove is the only place in Singapore where non-PR foreigners may purchase landed homes, subject to consent from Land Dealings (Approval) Unit or LDAU.

On mainland Singapore, LDAU is much more strict in granting approval to foreigners seeking its permission to buy landed homes including bungalows in GCB areas of up to 15,000 sq ft. Among other conditions, they have to be PRs and must demonstrate they are making a very significant economic contribution to Singapore. The already strict approval criteria were further tightened last year, which will translate to a more than 50 per cent fall in the number of PRs being granted approval to buy landed homes on mainland Singapore.

'It's getting tougher for PRs to get approval to buy GCBs,' acknowledges RealStar's Mr Wong.

The number of GCB deals fell from 121 in 2010 to 56 last year. The value of GCB transactions also eased from $2.27 billion to $1.15 billion, while the average psf price rose from $1,087 psf to $1,272 psf.

CBRE blames last year's fall in GCB deals on the January 2011 cooling measures which levied seller's stamp duty (SSD) rates of 16, 12, 8 and 4 per cent on those who buy a private home from Jan 14, 2011 and sell it within the first, second, third and fourth year of purchase respectively. The goal is to deter short-term property trading.

At the same time, the government lowered the loan-to-value limit for borrowers with one or more existing housing loans to 60 per cent.

The same reasons probably also led to slower sales of bungalows in Sentosa Cove. CBRE figures show the number of deals fell from 54 in 2010 to 22 last year, with value of transactions sliding from $921 million to $411 million.

Tuesday, Jan 10, 2012
AsiaOne  
  
HDB to speed up upgrading of old flats  
 
160,000 HDB flats will get a new look in the next five years under the Home Improvement Programme (HIP).

Including the 50,000 flats under the scheme in the last five years, about 300,000 flats that were built before 1987 are eligible to be repaired and renovated. This number represents a third of all HDB flats here.

In Parliament yesterday, Minister of State for National Development Lee Yi Shyan said that HIP for the outstanding 250,000 units will be implemented over the next 10 years, reported The Straits Times.

Under the scheme, common maintenance problems such as spalling concrete and ceiling leaks are addressed. Improvements include replacement of waste pipes and pipe sockets; repair of spalling concrete and structural cracks; and upgrading of electrical supply. Optional improvements include replacement of entrance door, grille gate and refuse chute hopper, as well as upgrading of toilets/bathrooms.

Works normally take about two to three years to complete. Mr Lee said that of the 50,000 flats picked in the last five years, HIP works have been completed in 5,800 of them. A spokesman for the Ministry of National Development (MND) told The Straits Times that the remaining 44,200 flats will be completed by 2014.

Wednesday, Jan 11, 2012
AsiaOne  
  
Over 900 eye Hougang DBSS flats  
 
Fewer than a thousand people submitted applications for the latest Design, Build and Sell Scheme (DBSS) project in Hougang as applications closed yesterday.

The Straits Times reported that as of late yesterday evening, only 956 applications were received for the 680-unit Parkland Residences.

In contrast, last October, a DBSS project in Clementi called Trivelis was more than two times oversubscribed.

Dennis Wee Realty's senior manager of research and consultancy Mr Lee Sze Teck, who said the response was weaker than expected, told the paper that this could be the result of uncertainty in the housing market.

The top bid of $388.1 million for the 99-year leasehold site was placed by a consortium comprising Hong Leong Group, City Developments Ltd (CDL) and TID Residential Pte Ltd.

"City Development's joint venture submitted a top bid of $495 per square foot per plot ratio, 20 per cent lower than what it paid for a nearby site in March last year," he added.

Only five bids were received for the 20,811 sq m residential site. Frasers Centrepoint and Lum Chang offered $360.8 million, or $460 psf ppr, while the lowest bid of $250.8 million was submitted by IOI Properties, MCL Land and Mezzo Development. This is 35 per cent less than the CDL bid.

Singapore in December announced new measures to cool the city-state's housing market, including the imposition of an additional stamp duty equal to 10 percent of the property value for foreigners.

Another recently introduced  property measure requires developers to build and sell all residential units within five years. Should they fail to do so, they will need to pay additional stamp duty of 10 per cent.

Dennis Wee Realty's senior manager of research and consultancy Mr Lee Sze Teck told The Straits Times that the top bid was 'below market expectations' even while considering site constraints and market conditions.

However, Mr Ong Teck Hui, head of research and consultancy at Credo Real Estate told the paper that the $388.1 million price tag is still substantial, with other developers passing up the opportunity due to 'higher market risks'.

Thursday, Jan 12, 2012
AsiaOne  
  
Seventh Market Place outlet confirmed at The Hillier  
 
Residents of SOHO development The Hillier can look forward to high-end grocery shopping, with Cold Storage's seventh Market Place outlet confirmed to be part of the HillV2.

It is the third to sign-on after New York lifestyle brand Dean & Deluca and premium confectioners Cold Stone Creamery just a month after The Hillier's integrated retail podium unveiling.

Market Place, as an anchor tenant, will take up about 8,600 sq ft.

"In the past year, we have noted that the appeal of mixed-use retail and residential developments such as The Hillier has been multi-fold for home buyers and investors. Such developments marry the strategic trans-urban locale and the unique value proposition of flexibility and creativity offered through SOHO spaces, with the enhanced convenience and connectivity through the integration of a retail mall," said Mr Kelvin Ling, Chief Operating Officer of Far East Organization's Retail Business Group.

Mr Victor Chia, Chief Executive Officer of Cold Storage Supermarkets said: "We are confident that HillV2 Market Place will resonate well with discerning residents of The Hillier and the Hillview/Upper Bukit Timah area."

HillV2 is a two-storey 55,500 sq ft retail and lifestyle mall complementing the 528-unit The Hillier residences in Hillview Avenue and is expected to be completed by end-2013.

To date, more than 300 units of the development have been sold.
 

Friday, Jan 13, 2012
my paper  
 
Work starts on another Jurong Lake District mega-project  
 
By Reico Wong

THE transformation of Jurong Lake District into the largest suburban commercial hub outside the city centre is slowly but surely taking shape, with yet another development project moving into the construction phase yesterday.

Developers of the mixed-development project, situated next to both Jurong East MRT station and Jurong East bus interchange, revealed more details about the 25-storey building at a groundbreaking ceremony.

To be called Westgate, the 594,000 sq ft lifestyle mall will span seven floors of retail space, said its joint developers CapitaMalls Asia (CMA), CapitaMall Trust and CapitaLand.

It will target middle- to upper-middle-income families residing in neighbouring districts, working professionals, visitors to the nearby upcoming Ng Teng Fong General Hospital, and students of nearby schools.

Mr Lim Beng Chee, chief executive of CMA, said that while they are just starting to market the mall to retailers, the tenant mix will include international and high-street fashion brands and IT and electronics stores.

There is also likely to be a supermarket, a food court and family restaurants. The mall is expected to be open for business by the end of next year.

The development will have a 20-storey office podium, named Westgate Tower, which is set to be completed by the end of 2014.

Employees who work at some 315,000 sq ft of office space there will have ease of access to the shops and other facilities, such as a childcare centre and a gymnasium.

Mr Lim added that he remains optimistic about rental rates at Westgate remaining on the level of between $16 and $18 psf per month - a target which CMA had when they first announced that they had been awarded the land parcel last June.

This is despite property analysts' forecast that the gloomy economic outlook would have a dampening impact on retail and office rental rates, especially in the suburban parts of Singapore.

Yesterday's event also saw the developers unveiling the architectural design of the complex.

Drawing inspiration from Jurong's original landscape of mangroves and rivers, design consultants from Benoy said that they want the complex to be an "urban oasis". They have laid out numerous areas to be filled with landscaped greenery and water features.

Semi-outdoor covered pedestrian streets will connect the complex to the MRT station, bus interchange, hospital and other neighbouring developments.

"Together with neighbouring malls IMM and JCube, we will have the equivalent of a three-in-one mega-mall in Jurong," said Mr Lim.

"This mega-mall will meet the needs of most shoppers in the western part of Singapore - IMM the value-focused mall, JCube the entertainment hot spot with an Olympic-sized ice rink, Imax cinema and this project, the lifestyle mall."

Minister of State for Trade and Industry and National Development Lee Yi Shyan, who was the guest of honour at the event yesterday, said that the Government is committed to leading the transformation of Jurong.

"The Workforce Development Agency's Devan Nair Institute is under construction (in the vicinity)...a new government complex housing my ministry, and two of our statutory boards, AVA and BCA, will also relocate here in the next few years", he said.

Monday, Jan 16, 2012
AsiaOne  
 
Khaw says it's unfair to blame PRs for higher COVs  
 
Permanent residents should not be blamed for the rising prices of resale flats, said National Development Minister Khaw Boon Wan in Parliament today.

Instead, he revealed that the buyers that up the stakes for the cash premium for flats are actually the local private property owners.

Mr Zaqy Mohamad, Member of Parliament for Choa Chu Kang GRC, had asked Mr Khaw if the Housing Board will consider limiting the sale of resale three-room and smaller flats to only lower-income Singaporeans.

Mr Zaqy said there is a 'common perception' that the increasing prices of resale flats, as well as the escalating amounts of cash premium paid to the sellers, more commonly known as the cash-over-valuation (COV), are due to PRs.

In August last year, C&H Properties real estate agent Daniel Tan told The Straits Times that sellers for four- to five-room resale flats in Woodlands, Ang Mo Kio and Bedok could command COV amounts ranging from $50,000 to $80,000. He said these sellers lowered their expectations to below $50,000 after HDB raised the income ceiling for new flats and housing subsidies.

In the third quarter of 2011, the median COV for three-room flats ranged from $27,900 to $34,000, according to the paper.

According to The Straits Times, Mr Khaw said: "The data (is) quite distinct. Typically, the PRs pay the lower COVs... among the groups, the higher COVs are often by private property owners, or former private property owners... especially the enbloc owners or residents, probably with a lot of cash and still need a roof... they are the ones who bid up the COV."

He added: "So let us don't unfairly blame a particular group for causing higher prices in the resale market."

Mr Khaw, who acknowledged that home prices have shot up in the last two to three years, said he has been working on the problem and asked for patience 'that the market will stabilise in due course'.

Monday, Jan 16, 2012
AsiaOne  
  
Clementi condo site sold for $408 million  
 
The Housing & Development Board (HDB) has awarded the Jalan Lempeng condominium housing site to Multi Wealth (Singapore) Pte Ltd, IOI Group's property unit.

It had submitted a bid of $408,000,800 for the 24,417.60 sq m land parcel.

The 99-year leasehold site has a maximum gross floor area of 68,369.28 sq m with a gross plot ratio of [2.8]. It can yield an estimated 685 dwelling units.

Located along Clementi Avenue 6 and off Commonwealth Avenue West, it is beside Nan Hua Primary School.

Tuesday, Jan 17, 2012
AsiaOne  
  
SPH submits top bid for Sengkang commercial site  
 
Singapore Press Holdings' subsidiary Earth Holdings Pte Ltd submitted the highest bid for a commercial plot in Sengkang.

It bid $328 million for the 8,790.3 sq m land parcel located in Sengkang West Avenue / Fernvale Road.

This translates to $1,156 per square foot per plot ratio (psf ppr), more than the market watchers' early prediction of about $800 psf ppr.

The competitive bidding saw 12 bids for the 99-year leasehold plot.

Tuesday, Jan 17, 2012
AsiaOne  
  
More commercial, industrial sites to be released to meet demand  
 
More commercial and industrial sites will be released to ensure that demand can be met over the medium term, said National Development Minister Khaw Boon Wan.

Mr Gan Thiam Poh, Member of Parliament (MP) for the Pasir Ris-Punggol GRC, had asked him about the possibility of cooling measures to stabilise the prices of these properties.

"To ensure that prices are not out of line with economic fundamentals, the Government has and will continue to release sites via the Government Land Sales Programme to ensure that there is sufficient commercial and industrial space to meet demand over the medium term," said Mr Khaw.

About 200,000 sqm of new office space and 90,000 sqm of new shop space, are in the pipeline per annum over the next 5 years. New growth areas such Jurong Gateway and Paya Lebar Central will continue to be developed.

For the first half of this year, 24 ha of industrial land will be made available, with more affordable sites with smaller sizes and shorter tenure to be released.

Under the subsidiary Earth Holdings, the bid is about 21 per cent above the second-highest bid of $272.2 million, which was tendered by Alpro Management Services. It also works out to be  $1,156 per sq ft per plot ratio (psf ppr).

Industry experts said retailers are keen to establish their presence in new retail centres, and a new township such as Sengkang with undeveloped plots allocated for housing is likely to bring in new households, comprising of young families with high income growth potential.

Thursday, Jan 19, 2012
my paper  
 
Khaw: HDB studio apartment unsuitable for singles  
 
STUDIO apartments are not suitable for singles, said Minister for National Development Khaw Boon Wan, but he promised to address their housing needs "in due course".

He said in Parliament yesterday that studio apartments built by the Housing Board are "purpose-built with senior-friendly features" and "do not fit the housing needs of younger singles".

The 30-year lease of these apartments also makes them inappropriate for the young, he added.

He was responding to a query from Member of Parliament Intan Azura Mokhtar as to whether his ministry will consider allowing singles aged 55 and below to buy studio apartments.

Mr Khaw said: "There is a wide range of potential house buyers... I will approach these problems systematically. I have to set priorities. In due course, I'll be able to address the various segments.

"But I've decided to just zero in for the first 12 months on the first-timers and I think we're delivering some results."

Mr Khaw also said he will focus on second-time buyers over the next 12 to 24 months, a point he had already raised in a blog post on Tuesday.

Thursday, Jan 19, 2012
my paper  
       
More data needed to show who are driving up COVs  
 
By Rachel Chan

THE Ministry of National Development revealed cash-over-valuation (COV) prices by buyer type for the first time yesterday, two days after its minister said in Parliament that permanent residents (PRs) are not to blame for pushing up prices of Housing Board resale flats.

Singapore private-property owners topped the list, paying a median COV of $45,000 in the fourth quarter of last year (see table), according to a table posted on National Development Minister Khaw Boon Wan's blog. In contrast, PRs paid the second-lowest median COV of $32,000.

Mr Eugene Lim, key executive officer of ERA Realty, said: "As private-property prices are at an all-time high, those who have cashed out would have easily made significant profit.

"So, they have the capability to pay higher COVs, especially for the larger flats that they usually buy. The other group are those who have profited from enbloc sales."

He cited a recent case in which a client made a profit of $700,000 after selling his intermediate terrace house for $1.5million.

The client "then bought an executive mansionette. He paid a COV of almost $100,000 and spent nearly $200,000 on renovation", said Mr Lim.

PropNex chief executive Mohamed Ismail pointed out that Singapore citizens were more likely to spend big bucks on COVs than PRs.

This is because citizens have more Central Provident Fund savings and qualify for higher concessionary loans.

Moreover, only Singaporeans are entitled to housing subsidies and buy resale flats under the Single Singapore Citizen Scheme.

"PRs who buy resale flats can't afford private properties as they are in the sandwiched income group," said Mr Ismail.

"Renting an HDB flat, which can cost more than $2,000 a month, is too expensive for them. As a result, they would rather save the money to buy a flat. And usually, they won't pay a high COV."

He said that PRs account for 20 per cent of the demand in the resale market, so they are not the sole reason HDB resale prices have risen by 83 per cent in the last five years.

Instead, overwhelming demand and insufficient supply are responsible for pushing up prices, he said. About 10 to 15 per cent of the resale-flat buyers are private- property owners.

While property analysts largely concur with Mr Khaw's observation, they called for more information to facilitate a better understanding of the causes of high COVs.

"He should give the data for the whole year instead of just that for the fourth quarter, which is the time of the year when transactions begin to slow down," Mr Ismail said.

Mr Lim said a breakdown of the number and types of flats bought by different groups of buyers would be helpful.

Mr Nicholas Mak, executive director of SLP International Property Consultants' research and consultancy department, said singles pay lower COVs because they tend to buy smaller types of flats.

"Without detailed information, there is insufficient data to conclusively claim that it is the private-property owners who are responsible for bidding up the COV," he said.

Thursday, Jan 19, 2012
AsiaOne  
 
Two residential sites launched today  
 
The Urban Redevelopment Authority (URA) and Housing Development Board (HDB) have launched two residential sites for sale by public tender today.

The sites, located at Hillview Avenue and Upper Serangoon View/Upper Serangoon Road, are launched for sale under the Confirmed List of the 1st half 2012 (1H2012) Government Land Sales (GLS) Programme.

The two land parcels can yield a combined 805 units, as part of the total 7,000 residential units to be launched under the GLS Programme for 1st half 2012.

The 1.26 ha Hillview Avenue site, which can yield about 370 private housing units, is near the future Cashew and Hillview MRT Stations.

The Upper Serangoon View/Upper Serangoon Road site, which is earmarked for executive condominium development, can yield about 435 units. It is located near the Hougang MRT Station and Bus Interchange.

Tender for the residential sites at Hillview Avenue and Upper Serangoon View/Upper Serangoon Road will close at 12 noon on March 6 and March 1 this year respectively.

Selection of the successful tenderer will be based on the tendered land price only.

Thursday, Jan 19, 2012
The New Paper  
  
Big HDB flat means big loans means big trouble in retirement  
 
By Teh Jen Lee

TO MOST Singaporeans, the flat they own is a sacred cow. It is not just their home but a form of investment too.

If things go bad, the idea is that they can sell their flat.

So they often buy the most expensive Housing Board flat that can be supported by their Central Provident Fund (CPF) ordinary account.

But some local economists have warned that this could significantly reduce the adequacy of their retirement income from their CPF savings.

These concerns were shared at the Singapore Perspectives 2012 conference yesterday, which was organised by the Institute of Policy Studies.

The conference this year focuses on challenges facing Singapore, such as the affordability of housing and health care, and the problems of an ageing society.

Associate Professor Hui Weng Tat of the Lee Kuan Yew School of Public Policy gave a hypothetical example of a 30-year-old, with a starting salary of $2,560, who buys an HDB apartment that costs $560,000 (the maximum price supported by CPF contributions).

When he retires at 65, his retirement income from his CPF special and ordinary account (if he has any left) will only be 38 per cent of his last-drawn salary, factoring in inflation-adjusted CPF salary ceiling at 2011 level.

This is far below the 60 to 70 per cent that the World Bank, in a study reported in 2005, considers as adequate old-age income for private-sector employees.

To make matters worse, Prof Hui found that over the past decade, there has been a sharp increase in the proportion of the highly educated among those retrenched or unemployed.

Data from various issues of the Manpower Ministry's labour force report showed that degree holders made up 9.4 per cent of those without jobs in 2001, but this figure jumped to 26. 6 per cent in 2011.

If a 40-year-old experiences unemployment even for a very short period, his retirement income at age 65 will be an even smaller percentage of his final pay cheque - dropping by as much as 10 percentage points.

Prof Hui said the increase in property prices poses the most serious threat to retirement adequacy, so there is a need to contain or bring down prices.

Associate Professor Chia Ngee Choon from the National University of Singapore's Department of Economics questioned whether the value of housing does get unlocked.

She referred to a Housing Board survey in 2008, which showed that 80 per cent of the elderly (those aged 65 and above) prefer not to take up monetisation schemes such as reverse mortgage and lease buyback.

Bequest motive

This could be due to the bequest motive, where people want to leave property for their children, or the "endowment effect".

"When you have property of your own, you are very reluctant to downsize or to sell.

"There are also other preferences such as individuals (who) like to age in place," said Prof Chia.

Among her recommendations to refocus the CPF to provide for housing finance while ensuring a more adequate retirement financing is to have a minimum pension guarantee targeted towards low-earners.

"The current system of redistributing income to the elderly is ad hoc in manner and dependent on the economic growth, and does not provide enough security for these households," she said.

Even as academics call upon the Government to tackle systemic problems through their policies, the social service providers are asking how they can play their part to help meet needs.

Mr Eugene Seow, executive director for Touch Community Services, said: "There are definitely going to be greater needs out there. It's like stating the obvious, so how ready are we to handle that? "As I hear about these macro issues, I am asking how can I increase and help the capacity of my organisation to meet these needs on a people-to-people basis?"

Thursday, Jan 19, 2012
The Business Times  
  
Burden of ABSD weighs down Dec home sales  
 
By Kalpana Rashiwala

The introduction of the additional buyer's stamp duty (ABSD) last month sent developers' private home sales in December to their lowest level in two years, latest official statistics showed, even though the figure for the full year was still a record.Credit Suisse, long term partner of the Singapore Art Museum. 

The number of private homes, excluding executive condos (ECs), sold by developers plunged to 632 units in December, down nearly 63 per cent month-on-month and 52.6 per cent year-on-year.

Including ECs, a public-private housing hybrid, developers moved 670 units last month, reflecting declines of 63.9 per cent month-on-month and 60.6 per cent year-on-year.

BT's analysis revealed that buyers returned around 100 private homes (including 20 EC units) in December, probably a knee-jerk reaction to the introduction of the ABSD on Dec 7. This was higher than the around 70 units returned in November

Despite last month's sharp slowdown, developers sold a record 18,920 units (including 2,893 ECs) in 2011, going by preliminary official data, surpassing the 17,344 private homes (including 1,052 ECs) they sold in 2010.

The Urban Redevelopment Authority will release final 2011 figures on Jan 27.

Excluding ECs, developers' private home sales last year totalled 16,027 units, just shy of the record 16,292 units for 2010. Property consultants' forecasts for this year range from 9,000 to 14,000 units.

'With the ABSD already in place, the defining factors for developers' sales in 2012 will be the economic outlook and the prices that will be set by the developers,' said Knight Frank chairman Tan Tiong Cheng.

'Pricing is something developers will have to adjust, before buyers blink. Another factor will be the foreign contingent. If foreign buying is still relatively strong, it may give some impetus for Singaporeans to jump in.'

DTZ South-east Asia chief operating officer Ong Choon Fah said: 'The underlying confidence in the market is still there among foreigners. Singapore is a victim of its own success; it's a safe haven and a liveable city.'

Excluding ECs, the 632 units sold by developers in December was the lowest since the 481 units in December 2009. Likewise, the 937 units developers launched last month (down 52.4 per cent cent month-on-month) was the lowest since December 2009's 734 units. 'For 2011 as a whole, a total of 17,847 units were launched, a new record,' said DTZ's Asia Pacific research head, Chua Chor Hoon.

December's top-selling project was Archipelago near Bedok Reservoir (103 units at a median price of $1,118 psf), followed by The Nautical in the Sembawang area (84 units sold at $882 psf median price), said CBRE. Bedok Residences, next to Bedok MRT Station, which was launched in November, saw 28 units being sold in December but 31 units were returned, taking cumulative sales in the 583-unit condo to 474 units by end-December.

Another project that was launched in November, The Palette, in Pasir Ris, saw 61 units being sold in December while eight units were returned, taking total sales to 420 units by end-December, notes CBRE executive director Li Hiaw Ho.

An analysis by BT showed six units were returned at Parc Vera, four at The Seawind, three each at Euhabitat and Terrasse,and one or two units at more than a dozen other projects. EC projects that had units returned in December include Arc at Tampines (eight units), Austville Residences (five units) and Blossom Residences (three units).

December's highest price transaction (in the primary market) was $3,591 psf at The Scotts Tower, followed by $3,041 psf at Twin Peaks and $3,033 psf at Marina Bay Suites.

A price-band analysis of primary market transactions by Colliers International based on URA's monthly developers' sales data revealed that a higher proportion of units were sold last year (80.3 per cent) in the lower price band of $1,500 psf and below, compared with 72.5 per cent in 2010.

'This reflects a shift in buyers' sentiment and their increasing price prudence over the year,' said Colliers director of research and advisory Chia Siew Chuin.

Just as private home sales thinned in December in the primary market, secondary market transactions continued to fall for the eighth consecutive month to 709 units in December, according to information from caveats downloaded yesterday , based on DTZ's analysis.